What's Next?

Existing Market. 

Step 1: I have the base concept for the incubator nailed down, but I would like to expand from just an incubator to more of an organization that nurtures and supports all local and small businesses and entrepreneurs. As I worked through the last assignment, I started to think about a networking group that fosters a culture of innovation.

Step 2: I talked to Katie (social media marketer/small business SEO) about the business incubator venture concept. She offers some similar services to what I would like to offer for my incubator like website building and social media management. She likes the idea of incubator and said she would work out of there if the location was right. She said the next trend in entrepreneurship is moving towards an all-digital platform for everything from advertising to services.

I talked to Colt B., a local well-known advertising agency owner. He has customers that are small local businesses as well as national chain restaurants. He says his product is his "idea" which is the most entrepreneurial statement I've heard in an interview. He doesn't think Ormond or Daytona are really good areas to have a business incubator and thinks I would be more successful somewhere like Orlando.

The last person I talked to in this business was Justin F. He owns a very large light manufacturing company. It doesn't seem like he is in "the business" but in fact he hires young people that need a chance to teach them about the business and then helps them start their own franchise. He thinks that small mom and pop manufacturing is the next trend in that type of market and suggested I put the incubator in an industrial zone rather than an office zone to allow for manufacturing.   

Step 3: I think I need to focus on the physical, tangible components of the business incubator (licensed workspace, somewhere to meet clients, etc.). Talking to Katie made me realize that there are a lot of people offering resources and service to small businesses and entrepreneurs remotely. So many kinds of businesses can be started without a physical workplace, so I might be better off focusing on seeking entrepreneurs that need a licensed space to create their product (like manufacturing).

New Market.

Step 1: After talking to existing market customers, I started to consider different demographics to target for the business incubator. I'm focusing on young people, millennials, college graduates, etc. Many people that fit that description are already in pretty good positions to start their own business. Maybe if I focused on marketing to a low-income or older demographic I might attract a different clientele.

One way I could take a step in this direction is to connect with local adult education centers. If an adult is enrolled in these kinds of courses, then they probably already have a desire to better themselves. They might have an idea or might be compelled to seek out an opportunity if they learn about the incubator. I think in my head I have an idea of what an entrepreneur looks like, but I could be way off base and might be more successful if I focused on a different market.    

Step 2: There are many low-income areas in Volusia county, and the median age is 46.5. Targeting this demographic is an act of community reinvestment, in a sense. Too often the people that don't really need the help are the ones that get it. I would be creating value by providing incubator services to this demographic because having access to low-cost business space and resources that they may not have even known existed

Step 3: The first person I interviewed is an employee at the Publix I shop at almost every day. Her name is Anna and she is an older woman (probably late 50s) that I have overhead discussing the custom art she makes. Custom art isn't really a new opportunity or entrepreneurial venture, but I figured I could get an idea what someone within that age group thinks. I explained my venture and how I would possibly be marketing to people in her age group that currently worked in retail or manual labor, etc. She said it sounded like a great idea, and that she wished she could afford something like that to have a place to make art for a living. She said it would be nice to have something like for free for low-income people. While I agreed, I am not sure how to operate a profitable business when giving services away for free. That would require some additional partnerships and adjustment to the business model.

The second person I interviewed is Steve; he works at the local brewery. He has a business idea for making custom brewing equipment for home brewers. Brett is in his late forties; he isn't college-educated and said he has always dreamed of not having to work for someone else. He said he isn't sure how to start, and the most helpful thing someone could do was walk him through licensing and insuring a business. This is something that I would offer at the incubator. That is why my personal experience plays into the incubator's model so much; I've gone through that process three times at this point.  

Step 4:  I think the most surprising thing is that I really didn't even consider this demographic when I was building my customer profile. I was foolish to overlook an entire market that may need the incubator services much more than college-aged millennials. By targeting that market, I would really be maximizing on that opportunity and meeting a group's need even more than I would with the younger group.

Then I decided to research for low-income incubators specifically and found one that I did not come across in my original research. There is a business development center in my area that offers some incubator services. There is an attempt to meet this need, but there is no social media presence and the website is very outdated. It's unclear if they are still actively working in the business development field.

I think it would be tough to turn a profit focusing on this demographic. The rent might have to be free at first, because people like Anna wouldn't be able to find a way to pay the rent at first before she started bringing in money. I might be able to incorporate partners that were willing to assist the incubator clients with initial rent as a philanthropic act.